Editing Peer-to-peer (section)

===Intellectual property law and illegal sharing===
Although peer-to-peer networks can be used for legitimate purposes, rights holders have targeted peer-to-peer over the involvement with sharing copyrighted material. Peer-to-peer networking involves data transfer from one user to another without using an intermediate server. Companies developing P2P applications have been involved in numerous legal cases, primarily in the United States, primarily over issues surrounding [[copyright]] law.<ref name="Springer"/> Two major cases are ''[[Grokster]] vs RIAA'' and ''[[MGM Studios, Inc. v. Grokster, Ltd.]]''<ref name="news.cnet.com"/> In both of the cases the file sharing technology was ruled to be legal as long as the developers had no ability to prevent the sharing of the copyrighted material.

To establish criminal liability for the copyright infringement on peer-to-peer systems, the government must prove that the defendant infringed a copyright willingly for the purpose of personal financial gain or commercial advantage.<ref>Majoras, D. B. (2005). Peer-to-peer file-sharing technology consumer protection and competition issues. Federal Trade Commission, Retrieved from http://www.ftc.gov/reports/p2p05/050623p2prpt.pdf {{Webarchive|url=https://web.archive.org/web/20121101120121/http://ftc.gov/reports/p2p05/050623p2prpt.pdf |date=2012-11-01 }}</ref> [[Fair use]] exceptions allow limited use of copyrighted material to be downloaded without acquiring permission from the rights holders. These documents are usually news reporting or under the lines of research and scholarly work. Controversies have developed over the concern of illegitimate use of peer-to-peer networks regarding public safety and national security. When a file is downloaded through a peer-to-peer network, it is impossible to know who created the file or what users are connected to the network at a given time. Trustworthiness of sources is a potential security threat that can be seen with peer-to-peer systems.<ref>The Government of the Hong Kong Special Administrative Region, (2008). Peer-to-peer network. Retrieved from website: http://www.infosec.gov.hk/english/technical/files/peer.pdf {{Webarchive|url=https://web.archive.org/web/20191209032145/https://www.infosec.gov.hk/english/technical/files/peer.pdf |date=2019-12-09 }}</ref>

A study ordered by the [[European Union]] found that illegal downloading ''may'' lead to an increase in overall video game sales because newer games charge for extra features or levels. The paper concluded that piracy had a negative financial impact on movies, music, and literature. The study relied on self-reported data about game purchases and use of illegal download sites. Pains were taken to remove effects of false and misremembered responses.<ref>{{Cite news|url=http://www.newsweek.com/secret-piracy-study-european-union-669436|title=Illegal downloads may not actually harm sales, but the European Union doesn't want you to know that|last=Sanders|first=Linley|date=2017-09-22|work=Newsweek|access-date=2018-03-29|language=en}}</ref><ref>{{Cite news|url=http://bigthink.com/david-ryan-polgar/video-game-piracy-may-actually-result-in-more-sales|title=Does Video Game Piracy Actually Result in More Sales?|last=Polgar|first=David Ryan|date=October 15, 2017|work=Big Think|access-date=2018-03-29}}</ref><ref>{{Cite news|url=https://arstechnica.com/gaming/2017/09/eu-study-finds-piracy-doesnt-hurt-game-sales-may-actually-help/|title=EU study finds piracy doesn't hurt game sales, may actually help|last=Orland|first=Kyle|date=September 26, 2017|work=Ars Technica|access-date=2018-03-29|language=en-us}}</ref>